Spending on Telecommunications Private Line Services to Hit $40.6 Billion in 2008, Says Insight Research Corporation

BOONTON, N.J., Sept. 8 (SEND2PRESS NEWSWIRE) — The $40 billion private line services market is posting solid growth for a third straight year, says a market analysis study from INSIGHT Research. Private lines are point-to-point circuits leased by enterprises from telecommunications carriers in order to link enterprise sites to each other and to the Internet. Private lines are also used by cellular carriers to link their towers to land line networks.

According to INSIGHT’s report, “Private Line and Wavelength Services, 2008-2013,” continued growth in the segment will come as a result of the strong demand for private lines used to backhaul 3G wireless services from cell towers to switching centers, increased demand for local bandwidth needed to cache IPTV video services, and most recently, the quickening pace of adoption of VoIP by large enterprises that are using private lines to link hosted and dedicated VoIP PBX solutions.

“As a consequence of the industry consolidations, pricing is now stable,” says INSIGHT president Robert Rosenberg. “And while gigabit Ethernet services and pair bonded copper solutions are potent alternative technologies, the private line market still has plenty of room to continue growing in excess of four percent over our forecast period,” Rosenberg concluded.

“Private Line and Wavelength Services 2008-2013” evaluates the total private line market and segments it by local and long distance private line service revenue, wholesale and retail private line revenue, revenue by type of carrier, revenue by T1, T3 or OC-n circuit class, as well as the number of T1, T3, and OC-n private lines sold. Estimates of the market share of the major providers are also provided.

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